NEW LOAN ISSUE

Sun (Auckland), Volume IV, Issue 965, 7 May 1930, Page 11

NEW LOAN ISSUE

PRIME MINISTER’S COMMENT ALLOCATION DEFINED Press Association WELLINGTON, Tuesday. The Prime Minister. Sir Joseph Ward, advises that the loan of £5,500,000 was placed by the underwriters on the market yesterday. Application lists opened at nine o’clock, and closed at midday with the loan oversubscribed. "The Dominion is to be congratulated,” the Prime Minister said, “on the successful result of this issue, especially when cognisance is taken of the many conflicting factors which have been operating for some time past on the world’s money markets. “The comments of financial authorities in England toward this loan,” added Sir Joseph, "are distinctly favourable to New Zealand’s good credit in London, and also to New Zealand’s finances generally. The sum raised is required for the public works programme during the current financial year. The interest rate is 5 per cent., and the issue price 99, with currency to 1949. Including redemption of the discount of 1 per cent, over the period of the loan, the return to investors will be about £5 Is 8d per cent. This, while almost a quarter per cent, higher than that of the £7,000,000 loan of January, 1929, compares very favourably with the return to investors from other recent issues on the London market.

“The loan will be allocated as follows: Public works general purposes, £4,500,000; hydro-electric power, £500,000; railway improvement, £500,000.”